(1) in paragraph (1)(A)(i), by inserting `except that this clause shall not apply in the case of a borrower with multiple holders of loans under this part,' after `under this section,';

(2) in paragraph (4)(C)(ii)--

(A) in the matter preceding subclause (I), by inserting `during any such period' after `and be paid';

(B) in subclause (I), by striking `, or on or after October 1, 1998,'; and

(C) in subclause (II), by striking `and before October 1, 1998,';

(3) in paragraph (6)(A), by inserting before the semicolon at the end the following: `, except that a lender is not required to consolidate loans described in subparagraph (D) or (E) of subsection (a)(4) or subsection (d)(1)(C)(ii)'.

`(2) SPECIAL RULE- For consolidation loans based on applications received during the period from October 1, 1998 through January 31, 1999, inclusive, the rebate described in paragraph (1) shall be equal to 0.62 percent of the principal plus accrued unpaid interest on such loan.'.